BUSINESS Secretary Lord Mandelson was today urged to rubber-stamp a £270 million European loan to help safeguard the future of Jaguar Land Rover after months of delays.

The Midlands’ biggest manufacturer looks set for approval of a 300 million euro loan from the European Investment Bank to raise hopes of a more secure future for 13,000 West Midland workers and their families.

JLR is likely to hear by tomorrow that an application for a loan worth £270 million will finally be confirmed by the European Bank.

The loan will free up JLR to develop new green vehicles and technology and help secure its future following months of falling sales, job losses and production cutbacks.

But JLR is still waiting for approval of a Government loan guarantee to underwrite the £270 million and enable the car-maker to fight its way out of the worst recession to hit the UK automotive sector in 40 years.

The imminent breakthrough for JLR was welcomed by MPs who had called for urgent action to save the Tata-owned group from continuing cutbacks and further lay-offs.

“The company is not asking for anything other than a Government-backed loan here. They are not asking for a bailout – they have done everything they can to retain as many employees as possible. This is the most welcome news that I could possibly imagine.

“The Government now needs to act as speedily as possible to endorse this decision. I will be knocking on Lord Mandelson’s door today to make sure that this loan is now guaranteed.”

Northfield Labour MP Richard Burden, chairman of the Parliamentary All-Party Motor Group, said: “I had heard that talks were going well and that JLR had met the European Investment Bank’s criteria, which is only right given that this company has a great business model for the future.

“It is now important that the Government does stand behind the loan because the future of JLR is very important to the future of West Midlands manufacturing.”

JLR spokesman Mark Foster said: “We are making progress and we are pleased that the Government has recognised the need for financial support for what is a strategically important industry for the UK.”

He declined to make any official comment on the European Investment Bank announcement expected tomorrow.

JLR insiders said the company would continue to press for a further £500 million in Government loan guarantees to help free up its cash flow and kick-start showroom sales.